According to CryptoPotato, Chainlink (LINK) experienced a significant price increase of over 18% after successfully completing a pilot program with the Depository Trust and Clearing Corporation (DTCC). The pilot, dubbed Smart NAV, is designed to simplify the tokenization of traditional finance funds, thereby facilitating wider institutional acceptance of blockchain technology.
The DTCC, the world's largest securities settlement system, partnered with Chainlink and several major U.S. financial institutions to carry out the Smart NAV pilot. As per a DTCC report released on Thursday, the project's goal was to create a standardized procedure for delivering and distributing net asset value (NAV) data of funds across both private and public blockchains using Chainlink's interoperability protocol, CCIP.
The successful completion of the pilot showed that structured data could be effectively delivered on-chain and incorporated into various on-chain applications, such as tokenized funds and bulk consumer smart contracts. These smart contracts store data for multiple funds and facilitate future industry exploration and numerous downstream applications, including brokerage portfolio tools.
The DTCC discovered that by integrating on-chain data delivery and establishing standardized roles and processes, it could facilitate real-time, more automated data dissemination and provide built-in access to historical data. This innovation could drive several future industry explorations and operational processes, offering benefits such as improved efficiency, quicker settlements, and increased transparency.
In response to the successful pilot news, Chainlink's LINK token's price rose by more than 18%, surpassing $16 for the first time since April 12. At the time of writing, the token is trading at $16.5, with a daily trading volume of just over $1 billion, representing a 195.4% increase in the last 24 hours.
The pilot is part of a wider trend of tokenizing real-world assets (RWA) such as bonds, funds, and other traditional investments. Tokenization has become one of the most popular applications for blockchain technology, attracting financial giants like BlackRock, Citi, and HSBC. These institutions are seeking the benefits that blockchain technology provides, including operational efficiencies, faster settlements, and enhanced transparency compared to traditional financial systems.
Prominent financial entities participated in the Smart NAV project, including American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street, and U.S. Bank. The Smart NAV project is focused on providing reliable, verifiable data across blockchain networks to support business workflows. DTCC served as the data provider and governor of the on-chain solution, while Chainlink's CCIP acted as the interoperability layer.
